In this final chapter, Bilbo reflects on the adventurous year he has spent in the company of the dwarves. Although he is returning home, Gandalf tells him what Bilbo himself knows, that he is not the hobbit he once was. It is somewhat symbolic of his new self that his house and furnishings are being sold; there has been a sort of death to the old Bilbo Baggins.
You are told that from this time onward, Bilbo is thought to be unusual, even a bit odd; that he likes to write poetry and visit elves. You understand, then, that his adventures have indeed changed him in some permanent ways. He resembles his mother’s family, the Tooks.
